Transported volume in North Atlantic liner services up by 3.4% from 2012

Transported volume in reefer forwarding services up by 7.9% from 2012

The Board proposes a dividend payment representing 30.0% of net earnings for the year

Forecasted EBITDA for the year 2014 in the range of EUR 37 to 41 million

GYLFI SIGFÚSSON, PRESIDENT AND CEO

We believe that overall the results of 2013 reflect the tough economic environment in Iceland. Adverseweather conditions in the North Atlantic and mechanical issues with a few of our vessels in the fourthquarter put our sailing schedule out of order and negatively impacted our results. For the full year,revenues amounted to EUR 433.8 million and grew by 2.4% from 2012. EBITDA amounted to EUR37.1 million which equals 9.1% decrease from previous year, taking into account one-off items in 2012.Performance of our international operations did show good results, but our operations in Iceland werebelow our expectations.

Transported volume in our North Atlantic liner services grew by 3.4% from 2012. Transported volumeto and from Iceland remained stable but there was growth in volume related to the Faroe Islands andNorway, which are a part of our home market in the North Atlantic, and volume between Europe andNorth America grew. Volume in the company's reefer forwarding services increased by 7.9% comparedto previous year, mainly due to increased Intra Asian transport and transport from Europe to Asia.

Eimskip introduced substantial changes in its sailing schedule in March 2013 which increased thecapacity of the system and in February 2014 we decided to make some further adjustments partly dueto negative effect of bad weather conditions in recent months. A new sailing route, the Gray line, hasbeen added between the Faroe Islands and Scotland in order to increase the flexibility of the sailingschedule and increase service reliability. It is important to be able to respond to requirements ofcustomers with an efficient and flexible system.

Eimskip has negotiated a further delay of delivery of the two container vessels which are currentlybeing built in China. It is expected that the first vessel will be in service as from the middle of this yearbut there is still uncertainty regarding the delivery of the second vessel which will presumably not bedelivered until late this year. Related to the delay, Eimskip has negotiated a USD 10.8 million reductionof the vessels' total purchase price. The delay of delivery will neither affect the sailing schedule norservices to Eimskip's customers. It will however extend chartering of vessels since the new vessels areexpected to replace two vessels which are currently chartered by the company.

The company is seeking opportunities to grow, especially outside Iceland and is working on variousprojects in relation to strategic acquisitions in line with the company's vision of being a leadingtransportation company in the North Atlantic. As part of this strategy Eimskip is in correspondence withthe Central Bank of Iceland, the Oslo Stock Exchange and other foreign stock exchanges for potentialdual listing of the company's shares.

The Board of Directors proposes a dividend payment to shareholders in 2014 in the amount of ISK2.60 per share. The total dividend payment is ISK 504.6 million, or EUR 3.2 million, which represents30.0% of net earnings for the year 2013.

Our EBITDA forecast for the year 2014 is in the range of EUR 37 to 41 million.

OPERATIONS OF 2013

Eimskip's operating revenue amounted to EUR 433.8 million in 2013 compared to EUR 423.7 million in2012, showing an increase of 2.4%. The revenue of liner services amounted to EUR 319.2 million andincreased by 3.8% from 2012. There was an increase in transported volume of the liner services in thecompany's main market areas in the North Atlantic besides Iceland, where imported volume to thecountry decreased from previous year. The volume increase in Eimskip's liner services in the NorthAtlantic was 3.4% from 2012. The revenue of forwarding services amounted to EUR 114.6 million,showing a 1.3% decrease from 2012. Transported volume in reefer forwarding services grew by 7.9%compared to 2012, mainly due to increased Intra Asian transport and transport from Europe to Asia.Fluctuations in international sea freight rates affect Eimskip's revenues and rates during the year 2013were considerably lower than in 2012.

EBITDA amounted to EUR 37.1 million compared to EUR 36.2 million in 2012, but adjusted EBITDA,after the EUR 1.7 million cost related to Eimskip's IPO in the third and fourth quarter 2012 and EUR 2.9million non-cash expense related to the share options forfeited by the executive management in thefourth quarter 2012, amounted to EUR 40.8 million, decreasing EBITDA by 9.1% from 2012. TheEBITDA ratio was 8.5% compared to 9.6% adjusted EBITDA ratio in 2012. Drop in imported volume toIceland negatively affected the operating results, in addition to several negative operational incidents inthe fourth quarter partially due to adverse weather conditions in the North Atlantic and mechanicalissues with a few of the company's vessels which put the sailing schedule out of order. The changesmade in Eimskip's sailing schedule in March 2013, which increased the system capacity and fixed costimmediately, also contributed to the decreased operating results since it takes time to grow revenues ina new and more powerful system.

Depreciation and amortization amounted to EUR 21.1 million compared to EUR 22.4 million in 2012.The reduction is mainly due to a part of the company's vessel fleet which now is depreciated to residualvalue.

EBIT amounted to EUR 15.9 million compared to EUR 13.7 million in 2012. Adjusted EBIT, after theaforementioned one-off items in 2012, amounted to EUR 18.3 million, showing a 13.2% decrease inEBIT from 2012.

Net finance expense amounted to EUR 3.2 million compared to EUR 3.0 in previous year. The changefrom previous year is explained by a EUR 0.8 million higher currency exchange loss than in 2012, buton the other hand interest expense on the company's long-term loans was lower by EUR 0.3 million in2013.

Net earnings before income tax came to EUR 12.7 million compared to EUR 10.7 million in 2012.

Income tax amounted to EUR 1.9 million compared to an income tax benefit in the amount of EUR 2.0million in 2012 due to recognized tax losses carried forward in a subsidiary in the amount of EUR 3.6million.

Net earnings amounted to EUR 10.8 million in 2013 compared to EUR 12.7 million in 2012.

The company's operations have been stable during the past few years as can be seen in the followinggraphs which show how revenues and EBITDA are divided to quarters from 2010 to 2013.

In these graphs, operating revenue and EBITDA have been adjusted for one-off items in 2011 and2012. Operating revenue and EBITDA for the first quarter 2011 have been reduced by EUR 6.4 milliondue to the collection of a claim that had previously been written off. EBITDA for the second quarter2011 has been increased by EUR 0.7 million due to the grounding of Godafoss and increased by EUR0.7 million in the third quarter 2012 due to costs related to the company's listing. Finally, EBITDA forthe fourth quarter 2012 has been increased by a total of EUR 3.9 million, including EUR 1.0 million dueto the company's listing and EUR 2.9 million due to costs related to the share options forfeited by theexecutive management.

Early in March 2013 the company introduced substantial changes in its sailing schedule. The numberof vessels on liner services was increased by one, expanding system capacity by 7.7%. The mainchanges consisted of the introduction of a new coastal schedule in Iceland with a direct connection withthe Faroe Islands, the UK and mainland Europe and increased frequency and shorter transit time toand from the USA with Portland in Maine replacing Everett and Norfolk as a port of call on the US eastcoast. The expansion of services to the USA are also intended to further support increased cargovolumes between Northern Norway and North America and improve connections between the USA andNewfoundland with shorter transit time. The changes also improve services for fresh fish from theFaroe Islands and to the growing oil industry in the North Atlantic, with calls at Aberdeen in Scotland.Now there is also a connection to the Baltic and an office has been opened in Gdynia in Poland.

In February 2014 adjustments were made to the sailing schedule which had been affected bydifficulties due to adverse weather conditions in recent months. A new sailing route, the Gray line, hasbeen added between the Faroe Islands and Scotland. The Gray line will increase the flexibility of thesailing schedule with the possibility of adding new ports of call in the Faroe Islands and it will alsoincrease the service reliability. As of the middle of February, the Red line stopped calling at the FaroeIslands and Aberdeen in Scotland and will instead offer direct services to Immingham in the UK andincrease the services to exporters of fresh and frozen seafood. The Red line's next call afterImmingham will be Rotterdam in Holland, besides taking care of the coastal services in Iceland.

Eimskip now operates 16 vessels, of which eleven are owned and five are chartered. Twelve of thevessels are on scheduled services, two are on spot services, one is used for bulk cargo and one is aferry.

FOURTH QUARTER OPERATIONS

Operating revenue EUR 106.9 million, down by 1.0% from 2012

EBITDA amounted to EUR 7.9 million, a decrease by 22.8% from adjusted EBITDA in 2012

Transported volume in North Atlantic liner services up by 7.9% from 2012

Transported volume in reefer forwarding services up by 6.0% from 2012

Operating revenue in the fourth quarter amounted to EUR 106.9 million compared to 107.9 million inthe same period 2012, showing a decrease of 1.0%. The revenue of liner services amounted to EUR79.2 million with an increase of 2.8% from 2012. There was a 7.9% total increase in transportedvolume in all of the company's main market areas in the North Atlantic. The revenue of forwardingservices amounted to EUR 27.7 million and decreased by 10.4% from fourth quarter 2012 due tochanged combination of transported volume with growth in shorter distance transport. These changesdid not negatively affect the operating results of the forwarding services. Transported volume in reeferforwarding services grew by 6.0% compared with the fourth quarter of 2012 due to increased shorterdistance services within Asia and increased transport of pelagic fish in Europe and from Europe toAsia. Sea freight rates in international markets on Europe/Asia trades in the fourth quarter wereconsiderably lower in 2013 than in 2012. Strengthening of the EUR against Eimskip's main operationalcurrencies has also resulted in decreased revenue in 2013 compared to previous year.

EBITDA amounted to EUR 7.9 million in the fourth quarter compared to EUR 6.3 million in the fourthquarter 2012. Adjusted EBITDA 2012, after one-off item due to a cost of EUR 1.0 million related toEimskip's IPO and EUR 2.9 million non-cash expense related to the share options forfeited by theexecutive management in the fourth quarter 2012, amounted to EUR 10.2 million, decreasing EBITDAby 22.8% from 2012. The EBITDA ratio in the quarter was 7.2% compared to 9.5% adjusted EBITDAratio in the fourth quarter 2012. Operating result of reefer forwarding services was good in the quarteror 13.8% better than in previous year. There was also good result of the company's liner services in theFaroe Islands, Norway and North America, but operating result of transportation to and from Iceland isbelow expectations. Adverse weather conditions and mechanical issues with a few vessels inNovember and December put the sailing schedule out of order and consequently negatively affectedthe operational results in the quarter.

Depreciation and amortization in the fourth quarter amounted to EUR 5.5 million compared to EUR 6.1million in the same period last year. The reduction is mainly due to a part of the company's vessel fleetwhich now is depreciated to residual value.

Depreciation and amortization amounted to EUR 21.1 million compared to EUR 22.4 million in 2012.The reduction is mainly due to a part of the company's vessel fleet which now is depreciated to residualvalue.

EBIT in the fourth quarter amounted to EUR 2.4 million compared to EUR 0.2 million in the sameperiod 2012. Adjusted EBITDA 2012, after the aforementioned one-off items related to the IPO and theforfeited share options in the fourth quarter, amounted to EUR 4.1 million, decreasing EBIT by 41.4%from 2012.

Net finance expense stood at EUR 0.8 million compared to EUR 1.1 million in the fourth quarter 2012.The change is mainly explained by non-cash currency fluctuations on intercompany balances.

Income tax amounted to EUR 0.4 million compared to EUR 0.1 million income tax in the fourth quarter2012.

Net earnings of the quarter amounted to EUR 1.2 million compared to a net loss after taxes of EUR 1.0million in the fourth quarter 2012.

BALANCE SHEET

Total assets EUR 314.4 million at year-end

Equity ratio 65.5%

Interest-bearing debt EUR 59.4 million

Net debt EUR 33.0 million

The company's total assets stood at EUR 314.4 million as at 31 December 2013. In comparison, totalassets amounted to EUR 313.3 million at year-end 2012.

Total non-current assets amounted to EUR 216.1 million at the end of the year compared to EUR 209.7million at year-end 2012. Net investments in non-current assets stood at EUR 25.5 million, of whichinvestments in the two container vessels under construction amounted to EUR 8.5 million.

Total current assets amounted to EUR 98.3 million at year-end compared to EUR 103.6 million at theend of 2012. Cash and cash equivalents amounted to EUR 26.4 million compared to EUR 37.3 millionat year-end 2012. The decrease in 2013 is mainly explained by investments in non-current assets.

Equity amounted to EUR 205.8 million at year-end and the equity ratio was 65.5%. Dividends in theamount of EUR 2.7 million were paid to shareholders at the end of April. For comparison, equity stoodat EUR 199.6 million and the equity ratio at 63.7% at the end of 2012.

Interest-bearing debt at year-end 2013 amounted to EUR 59.4 compared to EUR 59.3 million at theend of 2012. Increase of current interest-bearing debt relates to a bridge loan of EUR 7.6 million for thenew vessel building project in China which is due at the end of 2014. The company has secured along-term financing for the vessels upon delivery with a term of ten years.

Net debt stood at EUR 33.0 million at the end of the year compared to EUR 22.0 million at year-end2012 and the increase is mainly explained by investments in non-current assets.

CASH FLOW AND INVESTMENTS

Net cash from operating activities EUR 20.5 million in 2013

Cash and cash equivalents EUR 26.4 million at year-end

Net cash used in investing activities EUR 26.6 million

Net cash from operating activities amounted to EUR 20.5 million in 2013 compared to EUR 36.9 millionin 2012. The change is mainly due to changes in current assets and liabilities.

Net cash used in investing activities amounted to EUR 26.6 million compared to EUR 39.2 million in2012. Total investments in non-current assets amounted to EUR 29.3 million, including investments innew vessels totaling EUR 8.5 million. In previous year, total investments in non-current assetsamounted to EUR 50.5 million. Of the total investments 2013, EUR 2.8 million did not affect cashcompared to EUR 8.9 million not affecting cash in 2012.

Net cash used in financing activities amounted to EUR 3.6 million in 2013 compared to EUR 4.4 millionin previous year. Thus, cash and cash equivalents decreased by EUR 9.6 million compared to EUR 6.7million in 2012. Cash and cash equivalents at the end of 2013 amounted to EUR 26.4 million comparedto EUR 37.3 million at year-end 2012.

EBITDA FORECAST

The EBITDA forecast for the year 2014 is in the range of EUR 37 to 41 million.

The company does not presume much increase in imported volume to Iceland this year, but expectssome increase in export. It is assumed that a solution to the mackerel dispute in Iceland will be foundbut there is uncertainty regarding the capelin season in Iceland. In the Faroe Islands there isuncertainty regarding export due to a landing ban of pelagic fish in Europe, but import to the FaroeIslands is expected to grow and that export of salmon will still be substantial. Transport in Norway isexpected to continue growing and also the transport between Europe and North America. Reeferforwarding services is expected to grow and Eimskip plans to open new offices outside Iceland duringthis year. Prices in international markets are expected to rise. Finally, the current uncertainty in thelabor market in Iceland may affect the company's operations.

SHAREHOLDERS

Eimskip's share price up by 19.2% from the company's listing

The company's market capitalization EUR 309.9 million on 27 February 2014

Eimskip's shares started trading on NASDAQ OMX Iceland on 16 November 2012. The IPO price wasISK 208.00 per share and the closing price at year-end 2012 was ISK 230.00 per share. In 2013 theclosing price has been in the range ISK 221.00 to ISK 281.00, with an average for the period of ISK255.05. The closing price at year-end 2013 was ISK 262.00. The closing price on 27 February 2014was ISK 248.00 which represents a 19.2% price increase since the company's listing. The company'smarket capitalization on 27 February 2014 was ISK 48.1 billion, or EUR 309.9 million.

The total number of shares is 200,000,000 and 194.081.180 shares are outstanding. At year-end 2013there were 1,224 shareholders but they were 1.189 on 26 February 2014.

The Board of Directors proposes a dividend payment to shareholders in 2014 in the amount of ISK2.60 per share. The total dividend payment is ISK 504.6 million, or EUR 3.2 million, which represents30.0% of net earnings for the year 2013.

KEY FIGURES BY QUARTERS 2012 AND 2013

ABOUT EIMSKIP

Eimskip runs a network of 51 offices in 19 countries and operates 16 vessels. The total number ofemployees is about 1,400, of which about 800 are located in Iceland. Approximately half of Eimskip'soperating revenue comes from operations outside Iceland. The company's vision is to provideoutstanding transportation services through a dependable transport system in the North Atlantic, aswell as offering an extensive worldwide network of reefer logistics services.

INVESTOR MEETING 28 FEBRUARY 2014

Investors and market participants are invited to a meeting on Friday 28 February 2014 at 8:30 a.m. atEimskip's headquarters in Korngardar 2 in Reykjavík. Gylfi Sigfússon, President and CEO, and HilmarPétur Valgardsson, CFO, will present the company's financial results for 2013 and the fourth quarterresults. The presentation from the meeting will be available after the meeting on the company'sinvestor relations website, www.eimskip.is/investors, and in the company news release distributionnetwork of NASDAQ OMX Nordic.

APPROVAL OF THE BOARD OF DIRECTORS

The Board of Directors of Eimskipafélag Íslands hf. approved the audited consolidated financialstatements for 2013 at its meeting on 27 February 2014.

FINANCIAL CALENDAR

The Annual General Meeting will be held on 27 March 2014

Results for the first quarter 2014 will be published on 22 May 2014

Results for the second quarter 2014 will be published on 29 August 2014

Results for the third quarter 2014 will be published on 20 November 2014

Results for the fourth quarter 2014 will be published on 26 February 2015